Do I report income when it's earned or when it's paid?

Forum|Forum|2 years ago
January 11, 2024
1 reply
8 views

Hello,

I am a 1099 contractor and completed some work in December 2023, but did not receive my check until January 2024. Do I report the income as part of 2023 taxable income, or wait until I do my 2024 taxes and report it as 2024 taxable income? Thank you.

Bsch4477

Level 15

Assuming you are on a cash basis you report income when it is received.

TheShiflettAuthor

Level 2

What does cash basis mean? i usually am paid via written check or payment app like Cash App/Apple Pay

rjs

Level 15

@TheShiflett wrote:

What does cash basis mean? i usually am paid via written check or payment app like Cash App/Apple Pay

Cash basis does not refer to how you are paid. It's an accounting method. It means that you report income when you receive it and claim expenses when you pay them. Almost all individual taxpayers are cash basis.